Pakistan, Iran Set $10 Billion Trade Target, Sign 12 Agreements To Boost Ties

Key Highlights:

- Pakistan and Iran set new trade target of USD 10 billion annually.

- Signed 12 agreements covering trade, technology, and security.

- Agreed to boost border security and fight militancy together.

Islamabad: Pakistan and Iran have decided to increase their yearly trade volume to USD 10 billion, up from the current USD 3 billion. This was announced after a meeting between Prime Minister Shehbaz Sharif and Iranian President Masoud Pezeshkian in Islamabad on Sunday.

The two leaders signed 12 agreements and Memorandums of Understanding (MoUs). These covered many areas, such as trade, agriculture, science and technology, maritime safety, and communications.

Prime Minister Sharif said both countries are serious about achieving the USD 10 billion trade goal as soon as possible. He also expressed support for Iran's peaceful use of nuclear energy, saying it is their right. Sharif strongly condemned recent Israeli attacks on Iran and praised Iran’s defense of its territory.

Leaders Agree to Fight Militancy Together

Both Sharif and Pezeshkian discussed the issue of militancy along the Pakistan-Iran border. They agreed to work more closely together to combat terrorism and improve border security.

President Pezeshkian said both sides are taking serious steps to grow cooperation. He stressed the need to finalise a free trade agreement soon and welcomed Pakistan's efforts to improve regional peace.

Pezeshkian also met President Asif Ali Zardari, and both leaders promised to further strengthen ties in different areas. Zardari appreciated Iran’s support during difficult times and thanked Iran for standing by Pakistan.

Trade Ministers Push for Quick Progress

Earlier in the day, Commerce Minister Jam Kamal Khan of Pakistan met Iranian Trade Minister Mohammad Atabak. They discussed ways to remove trade barriers, improve border trade routes, and build stronger economic ties.

Khan said that geography gives both countries a natural trade advantage, as they are neighbors. He called for sending trade delegations and holding business meetings to make faster progress.

They also discussed increasing trade in areas like agriculture, livestock, energy, and logistics. Atabak encouraged more exports from Pakistan to Iran and promised quick action on the agreements signed.

A statement from Pakistan’s Commerce Ministry said both countries want to create a strong regional trade network, possibly linking with Turkey, Central Asia, and West Asia in the future.

Current Trade Favors Iran

A 2024 report by a think tank in Islamabad noted that Iran exports more to Pakistan than it imports. In 2022, Iran sent goods worth USD 1.48 billion to Pakistan, mostly petroleum and electricity. Pakistan’s exports to Iran were USD 842 million, including medical tools and iron pipes.

(With PTI Inputs)